MILAN, Nov 21 Reuters Carmaker Stellantis and Chinese EV battery giant CATL said on Tuesday they signed a preliminary agreement for the supply of battery cells and modules for the automaker39;s electric vehicle EV production in Europe.

The two companies said in a joint statement they were also considering a possible investment to set up a 5050 joint venture to support the automakers39; electrification strategy.

Based on the agreement, for which financial details were not provided, CATL will supply lithium iron phosphate LFP batteries to the FrancoItalian automaker, owner of brands including Jeep, Peugeot, Fiat and Alfa Romeo.

LFP batteries will allow Stellantis to offer highquality, durable and affordable EVs in the passenger car, crossover and small and medium sized SUV segments, they said.

Stellantis and CATL said the memorandum of understanding MoU announced on Tuesday outlined a longterm collaboration between the two groups, including identifying opportunities to further strengthen the battery value chain.

We believe the partnership will be a decisive step on both parties39; journey towards carbon neutrality goals, CATL Chairman and General Manager Robin Zeng said.

Stellantis CEO Carlos Tavares said the MoU on LFP battery chemistry was another ingredient in our longterm strategy to protect freedom of mobility for the European middle class.

For its EV battery needs in Europe Stellantis is building three gigafactories, in France, Germany and Italy through its…